The United States and Japan will step up their defence cooperation to deal with the threat from nuclear-armed North Korea as tensions in East Asia remain high, officials from the two allies said on Thursday.

This included partnering with the Salvation Army's initiative of providing out-of-home care for foster children, Ms Goward said.

"It is a partnership that produces the passion, the commitment and the nimbleness that we need to make people's lives better," she said.

Ms Goward fended off suggestions she was giving with one hand and taking with the other after confirming earlier on Thursday that rent would go up for public housing tenants who received carbon tax compensation.

"If the Labor opposition really care about disadvantaged people in this state, they would demand Julia Gillard get rid of the carbon tax because that's what is adding to our costs," she said.